Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Summary(Translation)
November 11, 2021

FIELDS CORPORATION
Consolidated Financial Results for the Six Months Ended September 30, 2021 (Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:
Telephone:

FIELDS CORPORATION(URL: https://www.fields.biz/ir/e/)
Tokyo Stock Exchange 1st section
2767
https://www.fields.biz/ir/e/
Hidetoshi Yamamoto, Chairman, President and Group CEO
Hideaki Hatanaka, Corporate Officer, Deputy General Manager, Group Business Management Department+81-3-5784-2111

Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results briefing:

November 12, 2021
Yes
Yes (for analysts and institutional investors)(Yen amounts are rounded down to millions)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)(Percentages indicate YoY changes.)
Net sales

Operating profit

Six months ended
September 30, 2021
September 30, 2020

Millions of yen

Note: Comprehensive income

For the six months ended September 30, 2021: ¥ 529 million [－%]For the six months ended September 30, 2020: ¥ (3,907) million [－%]

37,348
10,591%252.6(61.9)

Millions of yen

358(3,327)

Basic earnings
per share

Profit attributable toowners of parent

Ordinary profit%－－

Millions of yen

597(3,247)%－－

Millions of yen

315(3,923)%－－

Diluted earnings
per share

Six months ended
September 30, 2021

Yen

Yen

9.77

9.75

September 30, 2020

(119.06)―(2) Consolidated financial position
Total assets
As of
September 30, 2021
March 31, 2021
Reference: Equity

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

55,12429,032%51.2

52,37030,44356.9

As of September 30, 2021: ¥ 28,231 million
As of March 31, 2021: ¥ 29,803 million

2. Cash dividends
Annual dividends
Q1-endFiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
Fiscal year ending
March 31, 2022 (Forecast)

Q2-endFiscalyear-end

Q3-end

Total

Yen

Yen

Yen

Yen

Yen

－

0.00

－

10.00

10.00

－

0.00
－

－

－

(Note) Revisions to the forecast of cash dividends most recently announced: None
We have yet to decide the dividend forecast for the year ending March 31, 2022.

3. Forecast of consolidated earnings for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)
As announced in the “Consolidated Financial Results for the Fiscal Year Ended March 31, 2021,” published on May 13, 2021, we
will continue to gather rationale for calculation while reviewing the market environment, and disclose the forecast as soon as it
becomes possible.

1

*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of
consolidation): None
(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement(i)
Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to reasons other than (3) (i): None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)
(i)

(ii)

(iii)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021

34,700,000 shares

As of March 31, 2021

34,700,000 shares

Number of treasury shares at the end of the period
As of September 30, 2021

2,368,300 shares

As of March 31, 2021

2,368,300 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2021

32,331,700 shares

Six months ended September 30, 2020

32,952,771 shares* Quarterly financial results reports are exempt from quarterly review by certified public accountants or an audit corporation.
* Other specific matters# The Company is planning to hold a financial briefing (online) for analysts and institutional investors on Friday, November 12,
2021. Materials used at that briefing will be posted on the Company’s website after the briefing as soon as possible.

Consolidated Financial Results for the Six Months Ended September 30, 2021

Table of contents of Attached Document
1. Qualitative information on the quarterly financial resultsꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 2(1) Analysis of operating results and consolidated earnings forecasts .......................................................................2(2) Overview of financial position .............................................................................................................................4
2. Quarterly consolidated financial statements and important notes ꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏꞏ 5(1) Quarterly consolidated balance sheets .................................................................................................................5(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income................7(3) Quarterly consolidated statements of cash flows .................................................................................................9(4) Notes regarding the quarterly consolidated financial statements .......................................................................10(Notes regarding the operation of the company as a going concern) ................................................................... 10(Notes regarding occurrence of significant change in amount of shareholders’ equity) ...................................... 10(Application of the accounting method specific to quarterly consolidated financial statements) ........................ 10(Changes in accounting policies)......................................................................................................................... 101

Consolidated Financial Results for the Six Months Ended September 30, 2021

1. Qualitative information on the quarterly financial results(1) Analysis of operating results and consolidated earnings forecastsi.) Overview of first half of the current fiscal year (April to September 2021)
In FY2018, we revamped our management structure and have continued to implement various management reforms aimed
at achieving sustainable growth. Specifically, we have been implementing the following three measures.

I.

Group management focus on selection and specializing

Since FY2018, group management has focused on selection and concentration, as part of the management reforms. We haveselected the distribution field of the pachinko business to specialize in, and are concentrating the IP business, a driver of future
growth, in Tsuburaya Productions Co., Ltd. (hereinafter, “TPD”) and Digital Frontier Inc. (hereinafter, “DF”)
TPD is currently actively developing its digital service platform TSUBURAYA IMAGINATION in collaboration with NTT
DOCOMO, INC., as well as its e-commerce website TSUBURAYA STORE ONLINE and live distribution. In addition, SHINULTRAMAN, devised and written by Hideaki Anno, is ready to be released. Globally, we are seeing growth in merchandisingin Asian markets, particularly China. This includes initiatives with Netflix, Marvel, and others.
DF owns Japan’s top-class CG video and VFX technologies, and is responsible for our growth in the video field, which isindispensable for the IP business. DF continues to experience steady growth with CG video production centered on majordomestic gaming companies and VFX video production with Netflix.
The performance of other group companies also showed steady performance in the COVID-19 pandemic, thanks to theimplementation of various reforms.

II.

Strengthen product and technological capabilities at group companies

As part of the group management strategy focused on selection and concentration, we are strengthening the products,
services, and technological capabilities of each group company to develop highly profitable businesses that meet the
expectations of future markets and customer preferences. At the same time, we are strengthening collaboration across humanresources and organizations among the group companies.
In particular, with regard to enhancing product appeal in the pachinko business, in response to the enforcement of new
regulations in February 2018, we have prioritized strengthening our product planning and development capabilities, anddrastically reformed process to build an organization that integrates sales and development. This enables us to provide a stablesupply of what we define as “quality products”: products that are both profitable for pachinko halls and meet the expectationsof PS fans while satisfying the needs of leisure in a mature society such as Japan (i.e. moderate time and monetaryconsumption). As shown in Table 1 below, these efforts have resulted in an improvement in unit sales.

Table 1) Trends in our unit sales
FY2018FY2019FY2020

FY2021H1 results

43,026 units

64,561 units

16,501 units

77,918 units

Full-year results

138,023 units 191,335 units

95,911 units

III.

Implementing continuous cost reduction measures

Our group has long reviewed and reduced the costs of all businesses and operations with the aim of creating a strong
management structure capable of achieving sustainable growth even in the event of a significant change in the market
environment surrounding each business field. The effects of these measures have led to a sustained improvement in SG&A
expenses as shown in Table 2 below, and we will continue to implement cost reduction measures in the future.

2

Consolidated Financial Results for the Six Months Ended September 30, 2021

Table 2) Consolidated SG&A expenses (percentages indicate YoY changes)
FY2015

H1 results

Full-year results

FY2016FY2017FY2018FY2019FY2020

FY2021Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

11,964

11,461

9,724

7,759

6,902

5,896

5,770

8.8%

(4.2) %

(15.2) %(20.2) %(11.0) %(14.6) %(2.2) %

24,06923,015

19,13815,132

14,095

12,1691.5%(4.4) %

(16.8) %(20.9) %(6.9) %

(13.7) %As described above, the Group’s management foundation has been built to generate continuous revenues. In terms of businessresults for the first half of the current fiscal year, net sales were ¥37,348 million (up 252.6% YoY), operating profit was ¥358
million (up ¥3,686 million YoY), ordinary profit was ¥597 million (up 3,844 million YoY), and profit attributable to ownersof parent was ¥315 million (up ¥4,239 million YoY).

ii.) Explanation of consolidated earnings forecasts
Q3 (Oct.-Dec.)
In the PS business, we are selling two pachislot machines, the PACHISLOT GANTZ KIWAMI THE SURVIVAL GAME andthe Pachislot MONSTER HUNTER: WORLDTM GOLD HUNTING, and we have largely achieved our sales targets.
In addition, the pachinko machine NEON GENESIS EVANGELION -Roar for tomorrow-, aimed for release during the yearend shopping season, has high expectations from the market.
We are continuing further sales activities centered on these machines, and we expect to deliver more than 65,000 units inthe third quarter.
TPD has received favorable reviews for Ultraman Trigger: New Generation Tiga, which started TV broadcasting in July.
In addition distribution of Ultraman Tiga, a popular title celebrating its 25th anniversary, has begun on the company’s
platform. TPD is expanding its fan base to include people in their 20s and 30s who watched Ultraman Tiga in their earlychildhood. In the third quarter (Oct.-Dec.), domestic and overseas merchandising is expected to remain stable.
DF and other group companies are also making steady progress.

Q4 (Jan.-Mar.) and full-year outlook
In the PS business, planned titles have been largely in compliance with model certification tests, and we are already
implementing various measures to prepare for sales. On the other hand, it is unclear whether we will be able to respond toorders as the worldwide shortage of semiconductors has affected the procurement of parts and materials by pachinko andpachislot machine manufacturers.
In addition, market conditions are expected to remain unpredictable, as many medical professionals and infectious disease
specialists predict the arrival of the sixth wave of the COVID-19 this winter.
As a result, the Company has not determined the forecast for the fiscal year ending March 31, 2022. We will continue togather rationale for calculation while reviewing the market environment, and disclose the forecast as soon as we can predict
the impact on the Company's performance.

(Note 1) All figures in this report are based on our estimates.
(Note 2) Merchandise names in this report are trademarks or registered trademarks of each company.

3Consolidated Financial Results for the Six Months Ended September 30, 2021

(2) Overview of financial position(Assets)
Current assets increased by ¥2,549 million from the end of the previous fiscal year to ¥41,696 million. This was mainly due
to an increase in trade receivables.
Property, plant and equipment increased by ¥77 million from the end of the previous fiscal year to ¥4,349 million. This was
mainly due to an increase in tools, furniture and fixtures.
Intangible assets decreased by ¥72 million from the end of the previous fiscal year to ¥2,555 million. This was mainly due toa decrease in goodwill.
Investments and other assets increased by ¥200 million from the end of the previous fiscal year to ¥6,522 million. This was
mainly due to an increase in investments in capital.
Consequently, assets increased by ¥2,753 million from the end of the previous fiscal year to ¥55,124 million.
(Liabilities)
Current liabilities increased by ¥5,897 million from the end of the previous fiscal year to ¥16,792 million. This was mainly
due to an increase in liabilities related to payable transactions and trade payables.
Non-current liabilities decreased by ¥1,732 million from the end of the previous fiscal year to ¥9,299 million. This was mainly
due to a decrease in long-term borrowings.
Consequently, liabilities increased by ¥4,164 million from the end of the previous fiscal year to ¥26,091 million.
(Net assets)
Net assets decreased by ¥1,410 million from the end of the previous fiscal year to ¥29,032 million. This was mainly due to adecrease in retained earnings.
(Analysis of cash flows)
Cash and cash equivalents (hereinafter referred to as “cash”) at the end of H1 of the fiscal year under review decreased by¥1,687 million from the end of the previous fiscal year to ¥22,822 million.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥1,006 million (¥1,037 million provided in the same period of the previous
fiscal year). This was mainly attributable to profit before income taxes of ¥788 million, an increase in trade payables of ¥1,643
million, an increase in inventories of ¥1,003 million, an increase in trade receivables of ¥749 million and depreciation of ¥346
million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥493 million (¥666 million used in the same period of the previous fiscal year). Thiswas mainly due to payments for investments in capital of ¥558 million, proceeds from sales of investment securities of ¥463
million and purchase of non-current assets of ¥418 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥2,214 million (¥3,055 million used in the same period of the previous fiscal year).
This was mainly due to repayments of long-term borrowings of ¥2,041 million, cash dividends paid of ¥322 million andproceeds from long-term borrowings of ¥200 million.

4

Consolidated Financial Results for the Six Months Ended September 30, 2021

2. Quarterly consolidated financial statements and important notes(1) Quarterly consolidated balance sheets(Unit: Millions of yen)Q2 of current consolidated
fiscal year
(as of September 30, 2021)

Previous consolidated
fiscal year
(as of March 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets

24,6105,325

22,922
-

-

6,792

67
700
3,589
1,901
3,024
(71)

44
738
4,160
2,066
5,042
(70)

39,147

41,696

1,645
2,626

1,645
2,704

4,272

4,349

1,875
752

1,749
806

2,628

2,555

Investments and other assets
Investment securities
Long-term loans receivable
Other
Allowance for doubtful accounts

1,803
457
4,469
(408)

1,473
243
5,079
(274)

Total investments and other assets

6,322

6,522

13,223

13,42852,37055,124

3,610

5,857

253
3,863
100
288
14

215
3,652
187
276
4

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other

2,764

6,598

Total current liabilities

10,895

16,792

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Other

6,837
770
861
2,561

5,207
791
783
2,516

Total non-current liabilities
Total liabilities

5

11,031

9,299

21,92726,091

Consolidated Financial Results for the Six Months Ended September 30, 2021

(Unit: Millions of yen)Q2 of current consolidated
fiscal year
(as of September 30, 2021)

Previous consolidated
fiscal year
(as of March 31, 2021)
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares

7,948
7,579
16,104(1,946)

7,948
7,579
14,616(1,946)

29,68628,197

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Adjustments related to retirement benefits

116
1
(0)

36
1
(4)

Total accumulated other comprehensive income

117

33

7

17

Total shareholders’ equity

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

6

632

783

30,44329,032

52,37055,124

Consolidated Financial Results for the Six Months Ended September 30, 2021

(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
H1 of the year ending March 31, 2022

Net sales
Cost of sales

H1 of previous consolidated
fiscal year
(April 1, 2020 to September 30, 2020)
10,591
8,022(Unit: Millions of yen)
H1 of current consolidated
fiscal year
(April 1, 2021 to September 30, 2021)
37,34831,219Gross profit

2,568

6,128

Selling, general and administrative expenses

5,896

5,770

Operating profit (loss)(3,327)

358

2
2
2
90
9
73

1
1
141
78
13
69

181

306

50
28
1
21

42
17
7

100

67

(3,247)

597

0
-

231
2

0

234

2
8
607
0

13
11
19
-

Non-operating income
Interest income
Dividend income
Purchase discounts
Share of profit of entities accounted for using equity method
Distributions from investments
Other
Total non-operating income
Non-operating expenses
Interest expense
Provision for allowance for doubtful accounts
Financing expense
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on litigation
Losses from coronavirus disease (COVID-19)
Other
Total extraordinary losses

619

43

(3,866)788

Income taxes

56

176

Profit (loss)(3,923)

612

0

296

(3,923)

315

Profit (loss) before income taxes

Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

7

Consolidated Financial Results for the Six Months Ended September 30, 2021

Quarterly consolidated statements of comprehensive income
H1 of the year ending March 31, 2022

Profit (loss)

H1 of previous consolidated
fiscal year
(April 1, 2020 to September 30, 2020)(3,923)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Adjustments related to retirement benefits, net of tax
Total other comprehensive income(Unit: Millions of yen)
H1 of current consolidated
fiscal year
(April 1, 2021 to September 30, 2021)
612

14
0
0

(79)
0
(4)

15

(82)

Comprehensive income(3,907)529

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests(3,914)
6

232
296

8

Consolidated Financial Results for the Six Months Ended September 30, 2021

(3) Quarterly consolidated statements of cash flows
H1 of previous consolidated
fiscal year

(Unit: Millions of yen)
H1 of current consolidated
fiscal year

(April 1, 2020 to September 30, 2020)(April 1, 2021 to September 30, 2021)(3,866)
396
145

788
346
126

19

11

54

(11)

(9)

(9)

37
(4)

16
(3)

(90)

(78)

50
12,926(797)(6,328)42(749)(1,003)
1,643

(968)

89

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in retirement benefit liability
Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease/increase in consumption taxes
receivable/payable
Other, net

(369)

(124)

Subtotal

1,193

1,083

Interest and dividends received
Interest paid
Income taxes refund (paid)

4
(50)
(110)

3
(42)
(38)

Net cash provided by (used in) operating activities

1,037

1,006

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from redemption of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sales of shares of subsidiaries and associates
Payments for investments in capital
Loan advances
Proceeds from collection of loans receivable
Other, net

(142)
4
(147)
29
(36)
(260)
(38)
20
(96)

(303)
(114)
109
463
17
(558)
(0)
25
(131)

(666)

(493)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net

308(2,664)
(365)
(331)
(1)

(40)
200
(2,041)(322)(10)

Net cash provided by (used in) financing activities(3,055)(2,214)

Net cash used in investing activities

Effect of exchange rate change on cash and cash equivalents

(0)

(0)

Net increase (decrease) in cash and cash equivalents(2,683)(1,701)

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

24,72524,510-14

22,042

22,8229

Consolidated Financial Results for the Six Months Ended September 30, 2021

(4) Notes regarding the quarterly consolidated financial statements(Notes regarding the operation of the company as a going concern)
Not applicable.
(Notes regarding occurrence of significant change in amount of shareholders’ equity)
The Company adopts the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. fromthe beginning of Q1 of the current fiscal year. For details, please refer to the (4) Notes regarding the quarterly consolidated
financial statements, 2. Quarterly consolidated financial statements and important notes.
(Application of the accounting method specific to quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses are calculated by multiplying profit before income taxes by a reasonably estimated effective tax rate after theapplication of tax effect accounting to profit before income taxes for the fiscal year, including Q2 of the fiscal year underreview.
(Changes in accounting policies)
The Company adopts the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020,
hereinafter, the “Accounting Standard for Revenue Recognition”) from the beginning of Q1 of the current fiscal year andrecognizes revenue when control of promised goods or services is transferred to customers in an amount that is expected to bereceived in exchange for those goods or services.
Previously, revenue related to PS machine’s agency sales was recognized as revenue in the amount of the agency commission
received from manufacturers when the machines are delivered to pachinko halls and PS machine price is delivered to
manufacturers.
As a result of adoption of the above accounting standard and determining our role (principal or agent) in the provision of goods
or services to customers, for transactions for which we are the sole distributer, we have changed to a method of recognizing
revenues as the price of PS machines sold to pachinko halls when PS machines are shipped, as in the case of agency sales.
With regard to the application of the Accounting Standard for Revenue Recognition, etc., in accordance with the transitional
treatment stipulated in the provisions of paragraph 84 of the Accounting Standard for Revenue Recognition, the cumulative effectof retrospectively applying the new accounting policy prior to the beginning of Q1 of the fiscal year under review has beenadjusted to retained earnings at the beginning of Q1 of the fiscal year under review, and the new accounting policy has been
applied from the beginning of the fiscal year under review. In addition, the Company applies the methodology set forth in the
explanatory note (1), paragraph 86 of the Accounting Standard for Revenue Recognition to account for contract modifications
made prior to the beginning of Q1 under review in accordance with the terms of the contract after reflecting all contract
modifications, and adjusts the cumulative effect to retained earnings at the beginning of Q1 under review. Consequently, net
sales increased by ¥10,692 million, cost of sales increased by ¥10,182 million, and operating profit, ordinary profit, and profit
before income taxes increased by ¥509 million each for H1 of the current fiscal year. In addition, the balance of retained earnings
at the beginning of the fiscal year decreased by ¥1,441 million. Due to the adoption of the Accounting Standard for Revenue
Recognition, from Q1 of the fiscal year under review, “Notes and accounts receivable - trade,” which had been presented in“Current assets” in the consolidated balance sheet for the previous fiscal year, has been included in “Notes and accounts
receivable - trade, and contract assets.” In accordance with the transitional treatment set forth in paragraph 89-2 of the AccountingStandard for Revenue Recognition, no reclassifications have been made to the prior period under the new presentation method.
Furthermore, in accordance with the transitional treatment stipulated in paragraph 28-15 of the “Accounting Standard for
Quarterly Financial Statements” (ASBJ Statement No. 12, March 31, 2020), revenue from contracts with customers for H1 ofthe previous fiscal year has not been broken down.
The Accounting Standard for Calculation of Fair Value (ASBJ Statement No. 30, July 4, 2019, hereinafter, the “AccountingStandard for Calculation of Fair Value”) and other standards have been applied from the beginning of Q1 of the current fiscal
year, and in accordance with the transitional treatment stipulated in Article 19 of the Accounting Standard for Calculation of Fair
Value and Article 44-2 of the Accounting Standard for Financial Merchandise (ASBJ Statement No. 10, July 4, 2019), the new
accounting policy stipulated by the Accounting Standard for Calculation of Fair Value will be applied in the future. There is no
impact on the quarterly consolidated financial statements.

10